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GBBA
Aug 11, 2015 17:22:22 GMT
Post by stuartassetzcapital on Aug 11, 2015 17:22:22 GMT
I think they should be a black box personally. I mean you ether care what you're lending to (MLIA), or you don't. I think there should be a stats page for showing what's invested in, site-wide, for all the accounts though. I think this is the most likely solution
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GBBA
Aug 11, 2015 17:23:30 GMT
Post by stuartassetzcapital on Aug 11, 2015 17:23:30 GMT
As I've said I'm open to it but need to persuade others in the business who feel the accounts should be "black box" style. As we bring in more accounts, and with the changes I'm making with the next release, I think it's more likely to happen but I can't make any promises yet. But the accounts aren't black box - they're just obfuscated. In a black box account you'd buy units in the account, and get paid 7% on those units, and you wouldn't have holdings in particular loans. As implemented one does have holdings in particular loans, it's just that it's not easy to tell what they are. One implication of this is that if a constituent loan gets frozen different lenders will get different proportions of their accounts frozen (i.e. they can't extract the capital from the account); in a true black box money could be extracted until there's nothing left in the account as a whole but frozen loans, and hopefully we would never get to that point. (Depending on how the accounts were operated, it might mean that the value of the frozen loans exceeded the provision fund.) The intention is for all accounts to mirror the overall account diversification
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GBBA
Aug 11, 2015 17:25:52 GMT
Post by stuartassetzcapital on Aug 11, 2015 17:25:52 GMT
... Whist we have no intention of liquidating the account, my only 'question' would be how liquid the account is with large amounts of some of the loans already on the aftermarket. This is obviously dependant on time and growth of AC and its lender base so nobody can answer that at present.
I tried selling up my very small test GBBA (£20) and it all went in a day, despite containing only loans with high availability, so that indicates good liquidity (albeit on a sample size of 1 and and investment of £20). It is likely that the GEIA nd GBBA will tend towards 30 day liquidity in the next few months vs the current few minutes liquidity and there will be a new liquidity account with very fast liquidity as its primary aim and a modest coupon.
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GBBA
Aug 11, 2015 17:27:14 GMT
Post by stuartassetzcapital on Aug 11, 2015 17:27:14 GMT
I tried selling up my very small test GBBA (£20) and it all went in a day, despite containing only loans with high availability, so that indicates good liquidity (albeit on a sample size of 1 and and investment of £20). Also sold £10 ( yeah, another high roller) of my trial GBBA yesterday, gone in about 5 mins. Interested how many loans duck GBBA has invested in as my token involvement has never branched further than 5 holdings, even resorting to selling then buying the same one once just to keep itself amused, never a sniff of it getting adventurous & expanding its interest beyond that quintet Hi, that quintet is the current set of available loans that match the mandate but the account will build up substantially in the next few months.
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ilmoro
Member of DD Central
'Wondering which of the bu***rs to blame, and watching for pigs on the wing.' - Pink Floyd
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GBBA
Aug 11, 2015 17:33:09 GMT
Post by ilmoro on Aug 11, 2015 17:33:09 GMT
Also sold £10 ( yeah, another high roller) of my trial GBBA yesterday, gone in about 5 mins. Interested how many loans duck GBBA has invested in as my token involvement has never branched further than 5 holdings, even resorting to selling then buying the same one once just to keep itself amused, never a sniff of it getting adventurous & expanding its interest beyond that quintet Hi, that quintet is the current set of available loans that match the mandate but the account will build up substantially in the next few months. Its picked up two more today, one that drewdown yesterday and another that is the twin of one of the quintet, but it has ignored till now. However, if there's only 7 loans included that doesnt agree with the extensive list of 26 posted by duck further up this thread
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Post by chris on Aug 11, 2015 18:03:36 GMT
Hi, that quintet is the current set of available loans that match the mandate but the account will build up substantially in the next few months. Its picked up two more today, one that drewdown yesterday and another that is the twin of one of the quintet, but it has ignored till now. However, if there's only 7 loans included that doesnt agree with the extensive list of 26 posted by duck further up this thread There's a couple more loans where their data needs a tweak (such as one of the loans being flagged as BTL when it isn't) that will also open up a couple of other loans. As things stand there are 55 loans that match the account's criteria and around 5 others that should but currently don't. Those 5 will be brought into the account over the next few days as we review them. The GBBA has holdings in 35 of those loans at the moment although many are supply limited.
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niceguy37
Member of DD Central
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GBBA
Aug 12, 2015 7:41:33 GMT
Post by niceguy37 on Aug 12, 2015 7:41:33 GMT
I think they should be a black box personally. I mean you ether care what you're lending to (MLIA), or you don't. I think there should be a stats page for showing what's invested in, site-wide, for all the accounts though. I think this is the most likely solution If AC are going for a black box solution then perhaps the GBBA account should pay a straight 7% on invested funds, whether or not the loans are interest rolled-up or not. That may exercise the provision fund a little bit more, but it would mean the GBBA is a closer competitor to RS 5-year fund.
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duck
Member of DD Central
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GBBA
Aug 12, 2015 7:56:59 GMT
Post by duck on Aug 12, 2015 7:56:59 GMT
I tried selling up my very small test GBBA (£20) and it all went in a day, despite containing only loans with high availability, so that indicates good liquidity (albeit on a sample size of 1 and and investment of £20). It is likely that the GEIA nd GBBA will tend towards 30 day liquidity in the next few months vs the current few minutes liquidity and there will be a new liquidity account with very fast liquidity as its primary aim and a modest coupon. It is likely that the GEIA nd GBBA will tend towards 30 day liquidity in the next few months vs the current few minutes liquidity
Do I detect 'outside intervention' with respect to the 30 days? If a 'scarce' loan is put up for sale from GBBA or MILA surely it will sell in the same time? ............ or is the 30 days for full liquidation of an account?
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GBBA
Aug 12, 2015 8:02:09 GMT
Post by chris on Aug 12, 2015 8:02:09 GMT
I think this is the most likely solution If AC are going for a black box solution then perhaps the GBBA account should pay a straight 7% on invested funds, whether or not the loans are interest rolled-up or not. That may exercise the provision fund a little bit more, but it would mean the GBBA is a closer competitor to RS 5-year fund. It's a possibility, we could also exclude non-monthly interest paying loans if it causes a problem. But the GBBA has its own advantages such as non-punitive charges should you wish to withdraw your funds in less than 5 years, a higher rate than RS's 5 year fund typically reaches, asset security on top of the provision fund, etc.
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niceguy37
Member of DD Central
Posts: 504
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GBBA
Aug 12, 2015 8:22:58 GMT
Post by niceguy37 on Aug 12, 2015 8:22:58 GMT
If AC are going for a black box solution then perhaps the GBBA account should pay a straight 7% on invested funds, whether or not the loans are interest rolled-up or not. That may exercise the provision fund a little bit more, but it would mean the GBBA is a closer competitor to RS 5-year fund. It's a possibility, we could also exclude non-monthly interest paying loans if it causes a problem. But the GBBA has its own advantages such as non-punitive charges should you wish to withdraw your funds in less than 5 years, a higher rate than RS's 5 year fund typically reaches, asset security on top of the provision fund, etc. Indeed, the GBBA & GEIA have their advantages over RS 5-year loans. So if any disadvantages, even small disadvantages, can be removed, then it should be very popular for the upcoming p2p ISA opportunities, and easy to market.
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GBBA
Aug 12, 2015 8:28:13 GMT
Post by stuartassetzcapital on Aug 12, 2015 8:28:13 GMT
there will be a new liquidity account with very fast liquidity as its primary aim and a modest coupon. Oooooh! That sounds like city talk for a bank account that offers 0.5% interest. Nice move. Well rather considerably above that ! Market leading inc P2P market in both rate and liquidity.
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GBBA
Aug 12, 2015 8:30:23 GMT
Post by stuartassetzcapital on Aug 12, 2015 8:30:23 GMT
It is likely that the GEIA nd GBBA will tend towards 30 day liquidity in the next few months vs the current few minutes liquidity and there will be a new liquidity account with very fast liquidity as its primary aim and a modest coupon. It is likely that the GEIA nd GBBA will tend towards 30 day liquidity in the next few months vs the current few minutes liquidity
Do I detect 'outside intervention' with respect to the 30 days? If a 'scarce' loan is put up for sale from GBBA or MILA surely it will sell in the same time? ............ or is the 30 days for full liquidation of an account?
We currently have rate curves that move with risk and security and all we are saying is that the usual interest rate curve with respect to investment term should be reflected in our offerings. If people want longer term they will get higher rates and super short term will be lower.
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duck
Member of DD Central
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GBBA
Aug 12, 2015 11:11:06 GMT
Post by duck on Aug 12, 2015 11:11:06 GMT
It is likely that the GEIA nd GBBA will tend towards 30 day liquidity in the next few months vs the current few minutes liquidity
Do I detect 'outside intervention' with respect to the 30 days? If a 'scarce' loan is put up for sale from GBBA or MILA surely it will sell in the same time? ............ or is the 30 days for full liquidation of an account?
We currently have rate curves that move with risk and security and all we are saying is that the usual interest rate curve with respect to investment term should be reflected in our offerings. If people want longer term they will get higher rates and super short term will be lower. Thanks, understood!
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shimself
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GBBA
Aug 13, 2015 11:00:52 GMT
Post by shimself on Aug 13, 2015 11:00:52 GMT
Returning to my request for a holdings statement, and AC's lack of enthusiasm for same
What we have at the moment is data (a list of all the tiny transactions) but not information (a list of holdings). I can see the black box argument but in that event why bother us with the transactions statement?
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GBBA
Aug 13, 2015 11:41:51 GMT
Post by chris on Aug 13, 2015 11:41:51 GMT
Returning to my request for a holdings statement, and AC's lack of enthusiasm for same What we have at the moment is data (a list of all the tiny transactions) but not information (a list of holdings). I can see the black box argument but in that event why bother us with the transactions statement? At the time the account was created it was determined to be a legal requirement to provide that statement. Our preference would have been for a simplified statement showing deposits, withdrawals and repayments.
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